Union KBC MF home revealed the first-of-its-kind Trigger Fund (Series I) plan. The shut ended equity system will be opened for membership from 14 October, 2013 till 25 Oct, 2013. The brand-new fund deal (NFO) cost for the scheme is Rs 10/unit and financiers can subscribe to the system with a minimum capital of Rs. 5,000 and in mulitples of Rs. 10 after that.
The plan will primarily invest built up corpus into equity and equity-related securities constituting S&P BSE 200 Index firms. Besides equity, plan might likewise buy money market and debt financial instruments for rebalancing the collection. The devices of the system will be listed on the NSE and capitalists on a continuous basis can deal the devices on the exchange.
The shared fund scheme is book in the feeling that it would offer automated liquidation center in situation the NAV appreciates by 30 %. The in-built feature should prove beneficial to capitalists who fail to manual earnings at the correct time. The one-of-a-kind equity stock fund scheme is suitable for capitalists with high-risk profile finding resources admiration throughout the term of the scheme.
Working of the plan
The one-of-a-kind Trigger Fund (Collection I) scheme will allow investors to realize gains at a pre-specified higher degree. For example, in case when the NAV of the direct plan of the scheme goes across Rs 13 within a three year time from the allotment date, the fund manager will wind-up the plan on the tenth working day from the day it documented this benchmark admiration. However, the go back to the investor might be over or listed below the trigger price index of Rs. 13 based on the movement of the equity markets in between the moment the NAV reaches the trigger point degree and the last maturity date until when the fund manager cashes in the general profile.
In situation if the NAV of the system does dislikes by this pre-defined level, the plan will certainly be liquidated at the end of 3 years on the NAV applicable during that time.
Picture to clarify the working of Trigger Fund Series I scheme: Suppose if a capitalist is allocated the systems on November 1, 2013 and the NAV of the direct strategy of the scheme goes across 13 on August 14, 2014. The fund manager will certainly cash in the plan on the 10th business day adhering to August 14, 2014. Further, if the NAV of the direct plan and routine strategy fluctuates, reparation profits shall be based on the NAV of the particular thinking of the maturation day.